Estimate only. Not financial advice, not a credit approval, and not representative of any specific lender's policy. Based on common Australian lender serviceability principles.
Application Type
Applicant 1 – Employment
Household
Children / dependants in household
Income shading applies lender-style discounts to non-base income. Adjust in Settings.
Applicant 1 – Annual Income
$
$
Gross annual amount
$
$
Gross annual rental receipts
$
HECS / HELP Debt
Has HECS/HELP debt
Compulsory repayments reduce net income
Monthly Living Expenses
Use benchmark expenses (HEM)
Higher of actual or benchmark is always used
$
All living costs excl. rent/mortgage & liabilities below
$
Applied if higher than actual — editable in Settings
Additional Commitments
$
$
$
Credit Facilities
$
Total limit across all cards — not balance
$
Loan Repayments
$
$
$
$
Property Details
$
$
Before stamp duty / costs
Loan Parameters
%
%
APRA minimum is 3% above actual rate
%
Assessment rate won't fall below this
Loan Purpose & Type
Assessment Rate: — p.a.  ·  max(rate + buffer, floor rate)
Estimated Borrowing Power
$0
Calculating…
Monthly Repayment
—
At actual rate
Assessed Repayment
—
At assessment rate
LVR
—
Loan-to-value ratio
DTI
—
Max borrowing / income
Net Monthly Income
—
After tax estimate
Monthly Surplus
—
Enter property + deposit to see
Income Allocation
Surplus
New Loan
Expenses
Liabilities
✓ Helping
⚠ Reducing
Click ✦ AI Explain My Result below to get a plain-English breakdown of your borrowing position.
Pay off car loan
Add second income
Rates +1%
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More deposit
Scenario Comparison
Compare up to 3 scenarios side by side. Adjust inputs and save each scenario.
Scenario Breakdown Chart
Understanding Your Results
Serviceability is a lender's assessment of whether you can comfortably afford loan repayments given your income, expenses, and existing debts. Lenders don't just check if you can afford repayments at today's rate — they stress test your ability to repay at a higher assessment rate, ensuring you could still manage if rates rise.
APRA requires Australian lenders to add a minimum 3% buffer to the loan's actual rate when assessing affordability. This is a regulatory safeguard against rising interest rates. The assessment rate must also meet a floor rate (typically 9%+). Even if you can easily afford today's repayments, the lender calculates your capacity at this higher rate.
Lenders assess your potential liability, not just current debt. If you have a $20,000 credit card limit, a lender assumes you could draw that limit to zero at any time — so they calculate a monthly repayment obligation against the full limit. Reducing or cancelling unused credit cards before applying can significantly improve your borrowing power.
Lenders use benchmark expense figures (HEM — Household Expenditure Measure) as a minimum floor. With more dependants, benchmarks rise substantially. Childcare, school fees, and other costs further reduce your monthly surplus. The lower your surplus after all commitments, the smaller the loan you can service at the assessment rate.
A larger deposit reduces your LVR (Loan-to-Value Ratio) which is great for LMI avoidance and lender risk appetite — but it doesn't directly fix serviceability. Serviceability is about income capacity to repay. If your income doesn't support the assessed monthly repayment, a deposit can't substitute for that. Deposit helps LVR; income drives serviceability.
Every lender applies their own credit policy — different HEM tables, different income shading rates, different credit card assessment rates, different buffers, and different risk appetites by property type and location. This calculator uses a simplified, common set of assumptions. A mortgage broker can compare actual lender policies across the market for your specific situation.

BorrowScope — Estimated Borrowing Power Calculator

This tool provides an estimate only, based on simplified, common Australian lender serviceability principles. It does not represent any specific lender, constitute financial advice, or guarantee credit approval. Actual borrowing power varies significantly by lender, credit profile, employment type, property characteristics, location, documentation quality, and applicable lender credit policy. Always consult a licensed mortgage broker or financial adviser for advice specific to your situation.